CNA Financial Corporation (CNA)

CNA Financial reported second-quarter 2026 net income of $321 million, or $1.18 per share, on 3 August 2026, against $299 million a year earlier 3. Core income, which is net income without investment gains and losses and pension settlement results, was $324 million against $335 million 13.

The insurer grew but earned less from underwriting, the core business of pricing and paying for risk 3. Net written premiums, the premiums kept after buying reinsurance, grew 4 percent, and new business rose 11 percent to a record $718 million 3. The property and casualty combined ratio, claims and costs as a share of premium earned, was 96.5 percent against 94.1 percent a year earlier 3.

The underlying loss ratio, which leaves out storms and reserve changes, was 64.1 percent, up 2.6 points from a year earlier 14. Management said it is keeping a higher degree of conservatism in its loss assumptions, and that casualty classes take time to mature 4.

The Corporate and Other segment took a $77 million after-tax charge tied to legacy mass tort abuse claims, against $88 million a year earlier 3. The company said it intends to review its asbestos and environmental reserves in the fourth quarter 4.

CNA Financial Corporation was incorporated in 1967 and sells commercial property and casualty insurance, mostly through independent agents and brokers 1. Loews Corporation owned approximately 92 percent of its common stock at the end of 2025 1.

Total operating revenues were $15,070 million in 2025, up from $14,351 million in 2024, a rise of 5.0 percent (computed) 1. Most of the rise came from net earned premiums, the premiums for cover already provided, which grew from $10,211 million to $10,900 million 1.

Net income recovered to $1,278 million in 2025 from $959 million in 2024, a year that included a $293 million after-tax loss from pension settlement transactions 1. Core income barely moved, up $26 million to $1,342 million 1.

Catastrophe losses fell to $240 million in 2025 from $358 million in 2024, and 2025 included $64 million for the California wildfires 1. Against that, claim estimates for past years proved too low: unfavorable reserve development was $185 million in 2025 and $48 million in 2024 1.

Under a reinsurance deal, CNA passed substantially all of its legacy asbestos and environmental liabilities to National Indemnity Company, a Berkshire Hathaway subsidiary, up to a $4 billion limit 1. The amount ceded was $3.9 billion at 31 December 2025 1.

On 5 August 2025 CNA agreed to sell $500 million of 5.200 percent notes due 2035 to underwriters led by Wells Fargo Securities, Citigroup and J.P. Morgan 7. On 3 November 2025 it announced that Executive Chairman Dino Robusto's tenure would end on 31 December 2025 5.

Chief executive Douglas Worman became chairman of the board on 1 January 2026, and the board was cut to ten directors 5.

Specialty

Specialty sells management and professional liability cover, such as directors and officers and errors and omissions policies, plus healthcare liability, surety bonds and warranty contracts for vehicles and electronics 1. In 2025 it wrote $3,515 million of net written premiums and earned core income of $637 million, with a combined ratio of 95.3 percent 1.

Commercial

Commercial is the largest segment by premiums written 1. It sells property, workers' compensation, general liability, commercial auto and umbrella policies to small business, construction and middle market customers 1. In 2025 it wrote $5,821 million of net written premiums and earned core income of $820 million, at a combined ratio of 95.2 percent 1.

International

International writes cover through a Canadian branch, insurers in the U.K. and Luxembourg, and Hardy, its Lloyd's of London syndicate 1. In 2025 it wrote $1,347 million of net written premiums and earned core income of $207 million 1.

Life and Group, and Corporate

Life & Group is a run-off book of long-term care policies, which stopped selling cover but still owes benefits, and it posted a core loss of $44 million in 2025 1. Corporate & Other carries corporate costs and old liabilities, and its core loss was $278 million 1.

People, places and rivals

CNA had approximately 6,600 employees at the end of 2025 1. Douglas Worman is chairman and chief executive, and Scott Lindquist is chief financial officer 46.

It leases its headquarters in Chicago and offices in Canada, the U.K. and several European countries 1. It competes with a large number of stock and mutual insurers, and it names the Illinois Department of Insurance as its group-wide supervisor 1.

About 94 percent of the shares eligible to vote approved executive pay, on an advisory basis, at the 29 April 2026 annual meeting 6.

Current problems

Social inflation, meaning rising jury awards and claim costs, is pushing up casualty losses, and management said it is staying cautious in lines where competition has cut prices 4. Commercial auto retention was 79 percent, the fifth quarter in a row below 80 percent 4.

New business in national accounts property fell 50 percent as CNA walked away from accounts it could not write on acceptable terms 4.

The umbrella, in words

The main operating insurers are Continental Casualty Company, The Continental Insurance Company, Western Surety Company, CNA Insurance Company Limited, Hardy and CNA Insurance Company (Europe) S.A. 1. Hardy runs Lloyd's Syndicate 382, whose capacity and results are 100 percent attributable to CNA 1.

Loews Corporation owns approximately 92 percent of CNA's common stock, so CNA is a controlled company 2. A reinsurance contract with National Indemnity Company, a Berkshire Hathaway subsidiary, covers its old asbestos and environmental claims 1. Its investments include limited partnerships and common stock, which earned $302 million in 2025 1.

The company expects its property and casualty expense ratio to run around 30 percent for the full year 2026, Chief Financial Officer Scott Lindquist said in the second-quarter remarks 4.

It expects income from fixed income and other investments of about $575 million in the third quarter and about $2,300 million for the full year 4.

The company said it performs its annual Life & Group assumption updates in the third quarter and reviews its asbestos and environmental reserves in the fourth 4.

The board declared a regular quarterly cash dividend of $0.48 per share, payable 3 September 2026 to stockholders of record on 17 August 2026 3.

Management said it still sees opportunity where it can write accounts at an appropriate risk-adjusted return, and plans to stay cautious where market conditions call for it 3.

It also said its second-quarter property reinsurance renewals were oversubscribed, on favorable terms 3.

The Life & Group portfolio has an effective duration of 10.0 years, which the CFO said approximates the duration of its future policy benefit reserves 4.

Management said it is putting artificial intelligence tools into core workflows and plans to keep investing in talent, technology and AI 34.